All posts in category Economics

Money Matters

Note: I originally designed this post as a separate post, but it changed as I continued to write. At one point, I realized that I needed to write the background for the first post of the “Back to Basics” post series, as even in this form there were points left behind that needed to be […]

Back to Basics, Pt. 4: The role of expectations

In the previous post, we examined the Quantity Theory of Money. We have seen that increases in the rate of money growth lead to high inflation leading to higher speed and lower real money demand. This indicates that when it comes to an increase in the money supply growth rate, in the long run, the […]

Back to Basics, Pt. 3: The Quantity Theory of Money

In the previous post, we entered the fiat money system. Now we will examine the quantity theory of money. The supply and demand of the fiat currency is different from the commodity money model(silver or gold) we examined earlier. There are two reasons for this: In the fiat money system, the government has unlimited control […]

Pro-Market but not Pro-Business

For context, read this. Here’s my take: I see GameStop as a giant poker table. The only difference from a regular poker game is that an outsider periodically adds more money to the pot than players have. Everyone is aware that they are (or should) gambling and they have accepted the possible consequences. I have […]